Renters

What are Renters rights in a foreclosure?

Unfortunately the subprime meltdown has now started to affect many renters whose landlords cannot keep their rental properties due to foreclosure. Many tenants have no idea that the building has gone into foreclosure and they continue to pay rent to the former owner who will pocket the money but won’t maintain the building no longer.

A lot of renters will lose their leases when a foreclosure happens as a foreclosure will wipe out a lease. Most lease-holding tenants do not have to leave right away, but instead can pay month to month and will usually be given a 30 day notice to move out when the lenders are ready to take over the property. Tenants who don’t want to leave may be faced with eviction. Sometimes to encourage tenants to vacate the property quickly, cash incentives will be given to obtain keys.

What can you do if you are tenant?

After signing a lease, the landlord is legally bound to deliver the rental for the whole lease term and if a landlord defaults on a mortgage it will violate the contract. Small claims court is good place to start to bring forth this time of lawsuit in which a tenant can sue for moving and apartment-searching costs, fees and other differences such as difference in rental prices.

Here are some tips for renters dealing with a foreclosure and need help with their landlord.